Know the Complete Procedure to Get a Loan Under the Mudra Yojana

Finance

Under the Pradhan Mantri MUDRA Loan Yojana, there are three loan products that can be offered-Shishu, Kishore and Tarun. The classification is based on the stage of growth and the funding requirements of the beneficiary unit. Loans up to Rs.50,000 come under the “Shishu” category. Loans above Rs.50,000 and up to Rs.5 lakh come under the “Kishore” category. Loans above Rs.5 lakh and up to Rs.10 lakh fall under the “Tarun” category.

MUDRA loans can be availed for the following:

  • Vehicle loan: Commercial vehicle loan, car loan and two-wheeler loan
  • Business Instalment Loan (BIL): Loan for the working capital requirements of a business unit
  • Business Loans Group Loans (BLG) and Rural Business Credit (RBC): Drop line overdraft/Overdraft facility/Working capital loans

 

Eligibility Criteria for MUDRA loan

  • The age of the applicant should be between 18 and 60 years at the time of sanctioning of the Mudra Loan. He should not be more than 65 years of age at the time of maturity of the loan
  • The monthly income of the applicant should be above Rs.17,000. In case of small or micro units, the annual turnover should be Rs.15 lakhs or above. The profit after tax for individuals should be a minimum of Rs.1 lakh per year. For small businesses and self-employed individuals, the profit after tax should be at least Rs.2 lakhs per annum.
  • The occupational stability for salaried persons should be at least 2 years while for businesses it should be at least 5 years
  • The applicant should have resided at his current address for at least a year or should have a service relationship of 1 year with the bank through which he is applying

How to apply for MUDRA loan

MUDRA has enrolled 27 Public Sector Banks, 17 Private Sector Banks, 27 Regional Rural Banks and 25 Micro Finance Institutions as partners for facilitating loan assistance to the applicants. You need to approach any of the partner banks in your locality and fill up the loan application form. The following are the documents that you need to submit in order to avail these loans.

In case your small business, needs urgent finance,

  • Self-attested Proof of Identity 
  • Proof of Residence 
  • Loan applicant’s recent photograph (2 copies)
  • Quotation of machinery / other items to be purchased
  • Name of supplier / details of machinery / price of machinery and / or items to be purchased
  • Proof of Identity / Address of Business Enterprise, copies of relevant Licenses / Registration Certificates / other documents pertaining to the ownership identity and address of business unit 
  • Proof of category like SC / ST / OBC / Minority etc., if applicable.

In case you need further assistance, you can call up the MUDRA office in Mumbai or any of its nodal offices.

In case you need a higher loan amount that what’s offered under the Mudra Yojana, you can avail collateral-free business loans from Bajaj Finserv. These loans offer capital up to Rs.30 lakh at an affordable rate of interest. Pre-approved offers from Bajaj Finserv business loan and various other financial offerings make it easy to avail finance. Share a few basic details to know your pre-approved offer.

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